Business risk Apple company Marta Diana Bilogan Mvfu-09 Jolanta Kostecka Fvfu-09
Introduction• Company activity in brief• PESTLE analysis• Risks and opportunities in company activity• Risk map• Conclusions
Company activity• Apple is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The companys best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad.
• Political analysis: •Legal analysis:Apple design, develop and market •All laws related to work numerous product and service conditions, age lines. They sell their products to discrimination and education, consumer creative minimum wage professional, business and • All laws related to government customers. environment protection and requirements for recycling• Economical • All laws related to analysis: copyrights, propertyThrough January 2005, • All laws related to Apple has opened competition. 102 retail stores. • Environmental analysis:Apple is holding a lot of cash PESTLE analysis • weather, climate, and climate chance• Social analysis:• A lot of fans• Technological analysis:• Research And Development• Internet availability• New technologies in related sectors
Opportunities:Opportunities are external factors that influence thecompany’s current and future position; they arepresented as offers, trends, needs that promisebeneficial outcomes for the company.The production of computer anti-viruses, which areincreasing on PC’sPolitical-Increasing bonds and partnerships with other companies-Getting free market entriesEconomical-Selling products in international markets( such as the case of iPhone in China)-Open more stores in different places in order to increase salesSocial-Focus on customer needs-Large and increasing population resulting in more potential customers oftomorrow-Use other forms of advertising apart from product placement advertising
• Political Analysis : -While apple seems to display numerous products and conduct business on different segments, it is legitimate to wonder what the company is really good at? Too much diversity is exactly what can crush-Apple Inc. Appleproduces many ofits parts andproducts outside theU.S., like Ireland,Czech Republic,Korea, China, andCork. PoliticalConflicts betweenthe U.S. and any ofthese states mayhave awfuloutcomes for Apple -Bad internationalInc. relations, wars and terrorism might influence Apple in a huge manner
• Economical Analysis :-The global economicdepression mighthave immense impacton Apple Inc -Having too much cash in reserve might either mean that the company does not know yet how to allocate it or that they may have some risk concerns about future-The U.S. dollar has potential investment.lost value-Very little marketshare compared to -Its productmain competitor expensivenessMicrosoft threatens Apple being -Company is facing the risk of cannibalization and undercut by low-cost might deeply suffer imports.
• Social Analysis : -Another big social influence is the music industry. Apple-Apple’s image also portrays having developed the the modern individual’s biggest virtual media store, lifestyle, combining iTunes, is well ahead any functionality with design, other competition of this leading to brand direction. identification and loyalty. -Media piracy: iPod users illegally downloading music for free instead buying at iTunes-Apple is the globally seen as the King of technology, not because of most usage, but quality and design. -Low presence in advertising other than products placement in publishing and educational areas
• Technological Analysis :• Risk• R&D investment will not come through. • Opportunity Apple high investment for R&D • New products. New• Packaging new technologies always give technology inside for Apple opportunities to old design will not create successful come through products.• Changes of customer preferences related to technologies. SMS decreasing.
Legal Analysis• Risk• Reduced output and productivity. Case of factories • Opportunity where Apple products are • Increased protection manufactured. of products. Piracy• Oppurtunity for problems. ACTA. competitors copy Apple products. Case of Samsung.
• Environmental Analysis:• Risk • Opportunity• Fees 1.New products to meet• Damage to brand new regulations. More or image environment friendly products of Apple. 2. Improved or differentiated brand.
• Risk Map : A. B. political conflicts too much diversity C. bad international relations D. global economicImpact depression E. lost currency value F. Cannibalization 5 L K C J B G. expensiveness H. little market share I. Low presence in A advertising 4 I G J. R&D investment will not come through K. Packaging new H technology inside old design will not come 3 E through N P L. Changes of customer preferences M. Fees N. Damage to brand or 2 D O F image. O. Reduced output and productivity P. Oppurtunity for M competitors copy Apple 1 products. 1 2 3 4 5 Likelihood
ConclusionApple company is impacted by several internal and externalfactors for which identification helps PESTLE analysis. Suchfactors put Apple in risky position as well as gives for itopportunities.